Bringing litigation is far from simple. Many people think litigation is a straightforward way to resolve a dispute; however, it is often time-consuming, expensive, super-stressful, and not always the best route. Let’s take a look at whether litigation is financially worthwhile and the considerations.
What to consider
Before considering litigation, you will first want to consider whether there are any other methods available to resolve your dispute before bringing it to the attention of the court. This is also called ADR, or alternative dispute resolution, and the court will expect you to have considered this. ADR can include several options:
- Mediation
You and the other party or parties agree to talk through your dispute and try to come to a resolution with a mediator. The mediator is a trained and independent party who will help you to engage constructively.
- Arbitration
An independent arbitrator or panel will make a decision, which is legally binding, as to how to resolve your dispute. This option should be considered carefully.
- A meeting
You could consider a round-table discussion with the other party to work towards an agreement.
What about costs?
When it comes to litigation funding, there are several methods to consider if ADR is ineffective.
- Cost recovery
In cost recovery, the losing party will have to pay the costs of the successful party. This isn’t a guarantee, however, and depends on the nature of the dispute, the conduct of all concerned, and various other factors. It is important to remember that even if costs are awarded to you, they may not cover the entirety of your litigation, and you may still be liable for a percentage of the overall total.
- Litigation funding
For peace of mind when approaching litigation, many people consider litigation funding options. This can be a flexible solution, such as a loan or other tailored financial support, to bridge costs throughout the process. Companies such as www.novo-modo.co.uk/litigation-funding can offer such solutions.
Overall, there is no denying that litigation is a costly process; however, staying informed can help you manage your finances and expectations throughout a dispute.